TEAMFLY

Enterprise
Marketing
Management
The New Science of Marketing
Dave Sutton and Tom Klein
John Wiley & Sons, Inc.
Copyright © 2003 by Dave Sutton and Tom Klein. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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6. Cross-Market to Cross-Sell 114
7. Use New Media for Brand Activation 125
PART III REINVENT YOUR BUSINESS
,
NOT JUST COMMUNICATIONS
147
8. Restructure Based on Brand Experience 149
9. Measure Investment Performance 171
10. Optimize Marketing Investments to Drive
Profitable Sales 191
Conclusion: A New Day for Marketing 211
Index 219
vii

ACKNOWLEDGMENTS
T
his book is the result of relentless hard work on the part of
many talented people. While conducting research for the
book and developing content, we had the pleasure of meet-
ing and working with many marketers and hearing their stories—
many of which became the foundations for case studies in this book:
Lisa Gregg at American Express, Tim Riesterer at Ventaso, and
David Perry at Aspen Skiing Company.
We would like to thank everyone at Zyman Marketing Group
for their dedication to bringing Enterprise Marketing Management to
life with our clients across the globe. We would like to especially
thank those colleagues that dedicated their personal time, of which
there’s never enough, to the book. They’ve added content, been
there to think through new ideas, advanced their own theories, and
helped us to bring it all together. Thanks to Ric Alvarez, Art Ash,


I have grown more convinced than ever that all of the princi-
ples it contains are true and continue to be true. Companies
and organizations alike are adopting a scientific, disciplined
approach to marketing. It’s either because they realize that they
need to in order to grow their business or because they are forced to
do so by their customers or consumers who are not buying as much
of their products as they used to. One of the most powerful distinc-
tions that I revealed in that book was the fact that marketing is not
an art—it is a science. Of course, there are artistic elements in
some of the things that marketers do, but marketing itself is not an
art, and it’s not mysterious. It’s about as mysterious as finance. You
need to start with strategy and execute with discipline.
The first book was all about helping business leaders come to
this realization and then develop strategies to help them get to
where they want to go. Over the past few years we rapidly built our
marketing strategy consulting business, Zyman Marketing Group,
to help business leaders at some of the largest companies in the
world understand my principles, develop a strategy, and get into
action in the market. And, you know? It works.
xi
We learn with every client, with every project, and we pass on
our knowledge to our new clients.
Enterprise Marketing Management: The New Science of Marketing,
which has been written by two of the senior members of Zyman
Marketing Group, Dave Sutton and Tom Klein, demystifies mar-
keting into a scientific discipline at the next level of detail. The
book builds on the principles and practices that I outlined in The
End of Marketing as We Know It, but it goes on to answer the difficult
questions associated with implementing these principles and scien-
tific practices within a business—revealing the implications for

We worked with the originators of reengineering, Michael Ham-
mer and Jim Champy, to “fundamentally rethink and radically
redesign business processes to achieve dramatic improvement”
(Reengineering the Corporation, Harper Business, 1993). These efforts
were a precursor to the implementation of enterprise resource plan-
ning (ERP) systems that completely changed the traditional func-
tions of finance, operations, logistics, and human resources (HR).
xiii
Next we worked with one of the earliest implementers of
Siebel’s customer relationship management (CRM) software,
which radically redefined and brought a high level of discipline to
sales and customer service.
Now we have the opportunity to work with one of the world’s
top marketers, Sergio Zyman, to create and implement brand
strategies for the biggest, most famous brands on the planet.
Given our experience across all business disciplines, we’ve
noticed that marketing has, to date, avoided the sea change
brought about by the information revolution. Indeed, over and
over again, we see that it’s this gap between marketing and the
rest of the enterprise that is at fault for stagnating sales, high cus-
tomer attrition, poor return on CRM and marketing investments,
and overall poor financial results. While marketing is supposed to
be charting the strategic course of the company, it’s become the
Luddite laggard when it comes to putting information to work to
sell more.
The way to address this gap is enterprise marketing management
(EMM).
Enterprise because this approach to marketing is simply too
important to be left only to marketing. What could be more impor-
tant to your company’s success than understanding how to use

approach to driving your sales and profits higher with every
resource—your brands, your people, your stores, your trucks, your
anything? Keep reading.
From a financial perspective, this enterprise marketing man-
agement isn’t another method of spending more money than you’re
bringing in. Marketing’s longstanding tradition of freewheeling,
feel-good spending comes to an end with enterprise marketing
management. From here on out, marketing will make investments,
not gambles, and will make every effort to determine the return on
those investments.
By pulling marketing out of its dark ages and committing to a
more scientific approach, you will have the opportunity to put your
company ahead of the pack, not just by spending your money wisely,
but also by embracing all of the elements of an information-driven
company. You can be at the vanguard of nothing short of a business
revolution. And without a doubt, you’ll be selling more—because at
the end of the day, that’s exactly what every marketer wants.
This book is organized in such a way that you can start at the
beginning and read it straight through, or you can focus on the indi-
vidual chapters appropriate to your situation. You may notice that
we had to make up a few hypothetical cases along the way to
demonstrate the marketer’s scientific method. If you think about it,
this should come as no surprise. Not many enterprises think about
their marketing in this way, so there aren’t a lot of great examples
out there. The good news: You’ve still got time to change, embrace
the new science of marketing, and assume a leadership position in
the markets where you compete. (You may become a case for the
next edition!)
INTRODUCTION
xv

for inspiration that will connect with customers? Seeking
that perfect message that will resonate so deeply with cus-
tomers that they’ll rush right out and buy your product?
Guess again. As Sergio Zyman pointed out in his first book, The
End of Marketing As We Know It? (Harper Business, 1999) marketing
is a science, not an art. And if you spend your time thinking of mar-
keting as nothing but a creatively based endeavor, you’re going to
have a lot of ideas—but not a lot of customers.
This isn’t the science of your old chemistry lab in high school.
Many marketers chose marketing precisely because it involves
interaction with some of the most creative people in our society—
copywriters, advertising creatives, graphic artists. Marketers do
tend to have an eye for how things should look, an ear for language,
a deep and penetrating understanding, and zest for their cultural
metaphor. There’s absolutely nothing wrong with that.
However, every yin deserves a yang. The marketer’s role simply
can’t consist of fawning or mindless meddling in the creative enter-
prise du jour. First and foremost, a marketer is a businessperson.
It’s indeed the responsibility of the marketer to bring a healthy por-
tion of intellectual and process discipline to these investments in
3
4
ENTERPRISE MARKETING MANAGEMENT
what are often creative exercises. It’s this discipline that is at the
heart of enterprise marketing management (EMM) and the new
science of marketing.
To begin, a quick review of some of the terminology of science,
starting with the dictionary definition:
sciиence n.
1. The observation, identification, description, experimen-

are, but few companies have taken the steps necessary to validate
TEAMFLY


tomers) to develop the value proposition for your brand. The ques-
tion you need to answer is: How do you determine what benefits
actually drive your customers to buy?
Start with a hypothesis about what you hope and expect to
achieve with your marketing. For marketers, the usual hypothesis
runs along these lines: Will this campaign/activity/initiative help us
sell more? Within that overall framework are dozens of smaller,
more focused questions, including these:
~ How do I increase share without cutting prices?
~ How do I get products to market faster?
~ How do I beat a competitor that’s 10 times my size?
~ How do I close deals faster?
~ How do I reposition my brands against my competition?
~ How do I develop new products that win?
~ How do I segment my markets to sell more?
~ How do I differentiate what I sell when I’m in a com-
modity market?
Each one of these questions leads up to the big one: Does this action
actually help me sell more of what I have to more customers at
higher margins? Before you get to that point, however, you have to
prove a number of hypotheses along the way, which will help you
gain a greater understanding of your market. In other words, the
better your overall understanding of your market, the more likely
you are to sell more with your marketing programs.
Think back to your elementary school science classes, and you’ll
remember a technique called the scientific method, a means to
prove or disprove hypotheses by following these steps:
1. Observe some aspect of the universe.
2. Invent a theory that is consistent with what you have
observed.

Everyone applies this method at a certain level, even if it’s as
simple as determining another way to get to work when the traffic’s
heavy. But marketers traditionally must figure out how the scien-
tific method applies to their work while suffering with one hand
tied behind their back. And sometimes they’ve done poorly with the
hand they have left to them.
Marketing tends to function in an information vacuum—or an
information disconnect. Think of it like gambling. When the dot-
coms spent millions on Super Bowl advertising—the corporate
equivalent of living in a trailer and gambling one’s life savings—is
that really a better investment than placing all that money on red
and spinning the roulette wheel?
Gambling away dollars like this means your marketing isn’t
based on any particular aspect of the market. Gambling away dol-
lars doesn’t proceed logically from a measured observation of the
universe around you. And reverse-engineering science to fit the
6
ENTERPRISE MARKETING MANAGEMENT
results doesn’t excuse the haphazard strategy of shotgun-style
marketing.
If you’re not applying the scientific method, what you’re really
doing is just gambling, nothing more. This isn’t to say you won’t hit
a few winners along the way—chances are that you’ll come up aces
once in a while. But the odds are always against you: Play long
enough, and you’ll be flat out of chips.
PUTTING SCIENCE IN PLAY
So science explains what’s happening (in your markets, with your
customers), and the scientific method provides an approach to help
you understand how to expand your knowledge and increase your
control of what’s happening. You’re a marketer with products and

it this way. Marketers often fail in three key categories: those with
(1) the inability to use their knowledge of their customers to posi-
tion their brands; (2) the inability to put their brands to work be-
yond traditional media; and (3) the inability to build necessary
customer-facing processes with supporting organization, culture,
and information for brand management.
RUN BRANDS AS BUSINESSES, NOT AS CAMPAIGNS
Each one of these stumbling blocks requires further examination,
and succeeding chapters will explain more about how to address
them. First you must recognize that your brands aren’t these things
that sit over in a corner and get talked about only by your mar-
keters. Your brands are your business. If your company is guilty of
any of the following:
~ Thinking of a brand as a cute logo, a spiffy tag line, or
maybe a whiz-bang package
~ Going overboard and creating a new brand name for
everything, but not having anywhere near enough money
to actually make the brand name meaningful in the
minds of your customers
~ Continuing to organize and track the business (How
much did we sell? How much did we invest?) only on basic
product categories or, even worse, by person (Bill’s P&L,
Joan’s P&L) instead of by brands (brand-specific P&Ls)
Then you have plenty of work to do.
The first step on the road to enterprise marketing management
is to think of and run your brands as businesses. Brands are much more
than marketing campaigns, advertisements and logos. Don’t give
them any less respect than you would reserve for your divisions or
departments of today. If you don’t bring a brand-centric approach to
the way you think about and manage your business, you will never